A value proposition in marketing is a concise statement of the benefits that a company is delivering to customers who buy its products or services. It serves as a declaration of intent, both inside the company and in the marketplace. The term value proposition is believed to have first appeared in a McKinsey & Co.
Value Proposition
Your company's value proposition is the core of your competitive advantage. It clearly articulates why someone would want to buy from your company instead of a competitor.
Value Proposition vs Mission Statement
Your value proposition details what you offer customers and why they should choose you, while a mission statement details your objective as an organization. While the two can have points in common, a value prop is more product- and service-oriented while a mission statement is more goal-oriented.
Here are two examples for HubSpot and our CRM platform:
Value Proposition: "An easy-to-use CRM."
Mission Statement: "To help businesses grow better."
Value Proposition vs Slogan
A slogan is a short, catchy statement that brands use in marketing campaigns to sell a specific product. While your value proposition wouldn't necessarily go in an ad (at least, not usually), a slogan would. The most important thing to note is that a company can have different slogans for different campaigns or products.
Here are two examples from De Beers Group:
Value Proposition: "Exquisite diamonds, world-class designs, breathtaking jewelry."
Slogan: "A diamond is forever."
Value Proposition vs Tagline
A tagline is a short statement that embodies a certain aspect of your brand or business. While a value proposition is more concrete, a tagline can represent a concept or idea that your business stands for. Most businesses have only one tagline that is instantly recognizable and connected to their brand.
Here's an example from Apple:
Value Proposition: "The best experiences. Only on Apple."
Tagline: "Think Different."
Value Proposition vs Mission Statement vs Slogan vs Tagline
Now, let's look at an example of a business that has all four: Nike. Remember that slogans can differ depending on the campaign.
Value Proposition: "Customizable performance or lifestyle sneakers with unique colorways and materials."
Mission Statement: "To bring inspiration and innovation to every athlete in the world."
Slogan: "Twice the guts. Double the glory."
Tagline: "Just do it."
TLDR; While your value prop should help differentiate you from the rest of the industry, keep in mind it's not a slogan, tagline, or mission statement. Those types of copy are important accessories to your brand, but your potential customers and employees don't choose one business over the other solely based on these elements.
Your value proposition goes deep into the problems you want to solve for buyers, and what makes your product or service the perfect solution.
Elements of a Value Proposition
Your value proposition will most often appear on your website. While you can include it on marketing campaigns and brochures, the most visible place is your home page and, if you'd like, your product pages.
There are three main elements of a value proposition: the headline, the subheadline, and a visual element.
Headline
The headline of your value proposition describes the benefit the customer will receive as a result of making a purchase from your business. The headline can be creative and catchy, but it should be clear and concise, first and foremost.
Subheadline or Paragraph
The subheadline or paragraph should explain in detail what your company offers, who it serves, and why. In this section, you can elaborate on the information in the headline.
Visual Element
In some cases, a video, infographic, or image may convey your value proposition better than words alone can. Enhance your message with these visual elements to capture your audience's attention.
Value Proposition
Your company's value proposition is the core of your competitive advantage. It clearly articulates why someone would want to buy from your company instead of a competitor.
Value Proposition vs Mission Statement
Your value proposition details what you offer customers and why they should choose you, while a mission statement details your objective as an organization. While the two can have points in common, a value prop is more product- and service-oriented while a mission statement is more goal-oriented.
Here are two examples for HubSpot and our CRM platform:
Value Proposition: "An easy-to-use CRM."
Mission Statement: "To help businesses grow better."
Value Proposition vs Slogan
A slogan is a short, catchy statement that brands use in marketing campaigns to sell a specific product. While your value proposition wouldn't necessarily go in an ad (at least, not usually), a slogan would. The most important thing to note is that a company can have different slogans for different campaigns or products.
Here are two examples from De Beers Group:
Value Proposition: "Exquisite diamonds, world-class designs, breathtaking jewelry."
Slogan: "A diamond is forever."
Value Proposition vs Tagline
A tagline is a short statement that embodies a certain aspect of your brand or business. While a value proposition is more concrete, a tagline can represent a concept or idea that your business stands for. Most businesses have only one tagline that is instantly recognizable and connected to their brand.
Here's an example from Apple:
Value Proposition: "The best experiences. Only on Apple."
Tagline: "Think Different."
Value Proposition vs Mission Statement vs Slogan vs Tagline
Now, let's look at an example of a business that has all four: Nike. Remember that slogans can differ depending on the campaign.
Value Proposition: "Customizable performance or lifestyle sneakers with unique colorways and materials."
Mission Statement: "To bring inspiration and innovation to every athlete in the world."
Slogan: "Twice the guts. Double the glory."
Tagline: "Just do it."
TLDR; While your value prop should help differentiate you from the rest of the industry, keep in mind it's not a slogan, tagline, or mission statement. Those types of copy are important accessories to your brand, but your potential customers and employees don't choose one business over the other solely based on these elements.
Your value proposition goes deep into the problems you want to solve for buyers, and what makes your product or service the perfect solution.
Elements of a Value Proposition
Your value proposition will most often appear on your website. While you can include it on marketing campaigns and brochures, the most visible place is your home page and, if you'd like, your product pages.
There are three main elements of a value proposition: the headline, the subheadline, and a visual element.
Headline
The headline of your value proposition describes the benefit the customer will receive as a result of making a purchase from your business. The headline can be creative and catchy, but it should be clear and concise, first and foremost.
Subheadline or Paragraph
The subheadline or paragraph should explain in detail what your company offers, who it serves, and why. In this section, you can elaborate on the information in the headline.
Visual Element
In some cases, a video, infographic, or image may convey your value proposition better than words alone can. Enhance your message with these visual elements to capture your audience's attention.
TASK:
We're continuing on with your self-designed business venture.
As we move forward, your company/idea will begin to really take form.
1. Write your company's Value Proposition:
Start by answering the following questions.
Use the Harvard Business School MethodAccording to HBS a value proposition is executed best when it answers the following questions:
3. Include a visual element, sketched in your journal to convey your message.
As we move forward, your company/idea will begin to really take form.
1. Write your company's Value Proposition:
Start by answering the following questions.
Use the Harvard Business School MethodAccording to HBS a value proposition is executed best when it answers the following questions:
- "What is my brand offering?"
- "What job does the customer hire my brand to do?"
- "What companies and products compete with my brand to do this job for the customer?"
- "What sets my brand apart from competitors?"
3. Include a visual element, sketched in your journal to convey your message.